1.) In the United States, nearly two thirds of Starbucks outlets are company owned; the remaining one-third is operated by licensees. Outside the United States, the proportions are reversed: About two-thirds are run by licensees or partnerships in which Starbucks has equity staked. What is the explanation for two different market expansion strategies?

Question

Riya Ellis

Business

20 May, 02:24

1.) In the United States, nearly two thirds of Starbucks outlets are company owned; the remaining one-third is operated by licensees. Outside the United States, the proportions are reversed: About two-thirds are run by licensees or partnerships in which Starbucks has equity staked. What is the explanation for two different market expansion strategies?

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Nicolas Gibbs · Answer 1

In United States, the organization has its own outlets on the grounds that the organization S-B has all the assets it requires to open its own stores.

It just licenses a little segment of its business in U. S and that excessively just to those areas where store network is hard to keep up. The organization can without much of a stretch work through its own stores in America and would not need to fear about any opposition from licensees.

Organization S-B works in remote markets significantly through permitting on the grounds that purchasing its own stores in different nations would be expensive and dangerous.

The organization likewise would not need to stress over the skill of the nearby markets. Despite the fact that this system gives lesser returns yet at the same time it is an a lot more secure methodology in contrast with direct venture.